Unauthorized distribution of software is a major commercial problem causing losses of billions of dollars each year to software developers.
Typically, consumer software products are sold with licenses which restrict the use of the product to operate on only a single CPU at any given time, i.e., a single-user license.
Additionally, multi-user licenses may authorize installation of a software product and use of the software product on a fixed number of CPUs at a given time.
Although many users voluntarily comply with license restrictions, a significant amount of unauthorized installation and use of licensed software exists. This unauthorized activity deprives software developers of revenue.
Accordingly, many techniques have been developed to prevent unauthorized installation and use of software products. Many solutions employ specialized hardware to prevent unauthorized activity. Current security measures offered by software developers require the inputting of passwords and/or product serial numbers in order to activate installation and/or execution of the main program. These measures have been proven ineffective. Accordingly, efforts continue to improve protection for software developers against illegal distribution of software.